Types of Auto Insurance – When it comes time to find insurance coverage for their vehicle, most people are unaware of all the coverage that is out there, nor do they know exactly what each coverage actually does.
Because of this, most people find it out the hard way that they do not realize the lack of coverage that they have until they are involved in an accident or something along that nature when the insurance is put up to the test. This is why people must realize what kind of coverage that is out there and what it does.
Comprehensive coverage is something that most people do not think about, however, it can come in handy when they are faced in a situation in which comprehensive is responsible for covering.
For example, comprehensive coverage comes into play when the car is damaged due to natural disaster, such as hail storms, hurricanes, floods and so forth. It also covers the car if it is stolen.
Plus, when someone hits a deer or another animal that causes damage, without comprehensive coverage they will be unable to have their insurance company cover the expenses and will have to pay it all out of their pocket.
Collision coverage is pretty self explanatory. This is the coverage that kicks in when a vehicle is involved in a collision. This will cover the car that the person hit as well as their own car.
Those who have state minimums are still going to have collision coverage that is included in order to make sure that they are protected on the road.
Bodily injury coverage is something that all policies are required to have. This coverage kicks in to cover the medical costs that you may inflict on the other party if you are in an accident.
This coverage is vital to avoid being sued for medical care expenses that resulted from the accident, however, on some occasions the person is still sued.
Personal injury protection is something that most states are now requiring that their drivers have. This coverage helps to cover you should you be in an accident.
For example, helping to pay for medical expenses, funeral expenses and basically anything that relates to the accident, whether it was your fault or not.
Underinsured motorist coverage is something that most people carry on their policy, especially if they have full coverage.
This coverage is for when you are involved in an accident, regardless of fault in which the person does not carry enough coverage which could lead to your vehicle not being able to be fixed.
Your insurance company will cover the remaining costs, as long as it is within their predetermined limit so that you do not incur the out of pocket expense.
Uninsured motorist coverage is great to have when you are involved in an accident in which the other driver was not responsible enough to even bother with having auto coverage.
Through this, medical bills and repairs can be paid for by your insurance policy lessening the out of pocket expense for you.